The Scottish Government announced late last year that the First Home Fund was set to return in early 2021 to help first time buyers onto the property ladder. It’s now been confirmed that the First Home Fund will re-open on the 1st April 2021 and that there’s £60 million to help first time buyers.
Last year, particularly between August and November 2020, the property market was highly competitive with many properties selling at closing date and above home report. This was often driven by competition from first time buyers.
Consequently, we expect a similarly competitive scenario in the coming months as the First Home Fund is re-opened again.
First Home Fund – What Is It?
The First Home Fund was a pilot scheme introduced by the Government to give first time buyers up to £25,000 as a loan towards their property. The fund helped almost 8,000 people buy their first property in 2020, on the condition they had a 5% deposit.
The Scottish Government took an equity share in the property so the money borrowed could be repaid when the property was sold in the future. If the value of the property increased or decreased in the future – when the house was sold – then the Government would receive their percentage share back. As a result, it meant first time buyers would not be disadvantaged if there was a drop in house prices when they sold in the future.
First time buyers with 10% savings were able to borrow up to £25,000 from the First Home Fund, use 5% for their deposit and the other 5% if they felt they had to go above the home report value.
Thinking Of Selling Your Home?
With the return of the Government scheme, we’re anticipating an increased demand from first time buyers determined to take their first steps onto the property ladder. Typically, this also assists people who wish to move home and can mean an increase in demand for your own property.
The First Home Fund does not stop first time buyers from exceeding local price brackets, unlike the LIFT scheme, so there’s a greater opportunity from the first time buyer community to compete for properties.
If you’re thinking about moving home then why not ask us about a free property valuation? You are under no obligation to proceed with our valuation and you can, should you wish, list your property at a time suitable for you.
For more information about selling your home, please call us on 01355 907771.
Sources: https://www.gov.scot/policies/homeowners/first-home-fund/
